Ross W. Martin

E-Marketing in the Film Industry

A Little Bit About Me….• University of Nevada – Marketing

Major• Graduated from Spanish Springs

H.S.• Employed at KRNV News 4

My Family

I Was Born Here

That’s Why I Like:

I Grew Up Here

That’s Why I Like:

Oh Reno….such an easy target.But what I really like

is:

That’s why I want to discuss:

E-Marketing in the

Film Industry

What are the current marketing trends in the industry?

Television advertising usually accounts for 70-75% of a film’s marketing budget.

However, people are generally more engaged on the Internet, and are spending more and more time online each year.

So why don’t studios spend more time and money on E-Marketing?

Here’s how they could reach their films’ target markets:

Display

Ads

BlogsInteractive Sites

Sponsorsh

ipsTrailers

VIRAL CAMPAIGNS

CRMStrategies

Forums

SEOGames

The industry could eventually suffer if it

doesn’t make a greater effort to market a wider

variety of films.

E-Marketing is the most logical way to do

it

But what’s wrong with current industry trends?

I’m glad you asked…

People are getting tired of the old predictable

They want to be surprised at the theater with creative, exciting, and original films.

But….

These films are struggling…

Too risky to finance an original film with no pre-existing fan base or recognition.

When one is financed, little $ is spent on marketing it in order to minimize risk.

Therefore, the film will most likely gain little awareness, perform poorly at the box-office, and eventually be forgotten.

So studios are putting most of their marketing $$$ toward sequels and

blockbusters

Which is great, but…

They need to make sizable marketing investments on smaller films as well, in order to give them a chance at the box-office.

If $50 million is spent to market a $150 million (budgeted) movie, but only $5 million is spent to market a $15 million movie, can’t you only expect 10% of the awareness of the larger movie??? The proportion is the same, but the effect won’t be.

It’s about QUALITY

If a film is great and can resonate with people, don’t worry about its low budget or commercial prospects. Spend the time and money and spread the message.

In 2008…The rights to a certain film were purchased by Warner Independent Pictures and later transferred to Warner Bros.

The budget of the film was a miniscule $15 million.

It sat on the shelf for a long time and wasn’t released.

Warner Bros. didn’t think it would do well at the box-office and planned for a straight-to-DVD release.

The DEATH KISS for a film.

Fox Searchlight Pictures later made a deal to buy 50% of Warner Bros.’ interest in the movie and split distribution costs.

The film was finally screened at film festivals and was given a limited theatrical release on November 12, 2008.

Slumdog Millionaire Went on to gross $378 million worldwide

and win

8Including

Best Picture

Academy Awards

So…it’s possible.

If studios make the effort to market their original and well-made low-budget films, they will realize greater profits than they would by only focusing on blockbusters, and the public will regain a more positive

opinion of the film industry.

By utilizing E-Marketing strategies, a studio’s campaigns will become:

Less Expensive

More Creative

More Engaging

More Successful

More Diversified

Does CRM Pertain to Film?

YES (in a different way than in most industries, but yes)

Target market engagement is key.Getting the target market involved.Creating relationships, excitement, and anticipation.

“Recognizing a customer’s role” is the first rule.

Paying attention to where they are and what they want.Establishing a system of 2-way communication

Retain the customer’s interest even after the film has left theaters.

People are loyal to franchises, directors, actors, etc.

Creates a basis for CRM.

Case in point:

A great example of online CRM in the film industry

Star Wars is a brand

Customer (fan) loyalty is critical

“Expanded Universe” includes books, videogames, TV & radio shows, etc.

Starwars.com includes movie/show/videogame info, a blog, a store, an encyclopedia, featurettes, clips, links to fan sites, and more.

Major presence on online forums and various sites.

It can be very beneficialOther franchises such as The Lord of the Rings and Harry Potter also employ effective online CRM strategies

“Pottermore” is an exclusive online club for Harry Potter fans that gives them access to previously unreleased material and allows them to purchase Harry Potter e-books.

These are high-profile examples, but any film can implement an online strategy through sites, blogs, forums, games, social media, etc., that allows them to retain customers and get them interested in movie products or other films from the same studio, franchise, actor, director, or writer.

It’s all about ENGAGEMENT.

Viral E-Marketing

A Useful Trend and Invaluable Asset for Studios

Viral E-Marketing

Engages customers on a whole new level.

Uses the Internet to rapidly spread information

Creates discussion between friends.

Crosses cultural boundaries and draws media coverage.

Some films have used it successfully, but

only a relatively small number

Paranormal Activity$15,000 budget.

Shot in 7 days in the director’s home.

Films this small almost never make it to theaters.

Owned and distributed by Paramount and Dreamworks SKG

Film had no hype prior to production, no recognition for the director or actors, an unknown concept, and no fan base.

Ended up grossing $193.4 million worldwide and spawning two sequels.

HOW???

A Brilliant Viral e-Marketing Campaign

No generic horror trailers or traditional online display ads.

Videos/trailers released on various sites and online communities that showed the effects of the movie, not just clips from the movie itself.

People screaming

People claiming they weren’t able to sleep

“The scariest film I’ve ever seen” comments

Midnight screenings in college towns (target market)

An Eventful page that allowed people around the country to “demand” the movie be screened in their city.

Paranormal Activity was screened in those markets and attracted even more hype.

Excitement, anticipation, and social media FRENZY

Other Viral E-Marketing Successes….

The Dark KnightRises

Viral E-MarketingThe most dynamic way to engage customers.

Creates an unprecedented level of excitement and anticipation.

Results in enormous box-office success if executed well.

So what should studios be doing?

Studios should be focusing more on original ways to

reach their target markets online instead of spending so much time and money

on television and print ads.

Founded in 1999

Over 2.2 million unique visitors monthly

Collects and posts reviews for every film from film critics and journalists around the country.

Each film has a “Tomatometer” score, which is the % of positive reviews that the film received.

Over 60% is “Fresh”, under 60% is “Rotten”

If a film has over 40 reviews and its Tomatometer score is greater than or equal to 75%, it is “Certified Fresh”.

The go-to site for movie reviews and opinions.

Can make a film marketer’s job very easy or very difficult.

Can significantly help a film generate great word-of-mouth and lead to incredible box-office success.

Can also practically destroy an entire campaign and negatively influence others’ opinions of a movie.

Needs to be closely analyzed and monitored by film studios during marketing campaigns.

Thank You!